Dollar/yen drops to the 151 level, seen as yen depreciation restraint after statements at the US-JJ finance ministers' meeting

【10/28Market Overview

In Tokyo time, the U.S. Treasury issued a statement that “emphasized the role of sound monetary policy formulation and dialogue in stabilizing inflation expectations and preventing excessive exchange rate fluctuations,” which was interpreted as a topic of discussion on the yen, leading to yen buying, and the USD/JPY fell to as low as151.76yen. In European time, when Finance Minister Katayama was reported to have said that “no concrete discussions on the exchange rate were held,” “there was no direct discussion on the direction of monetary policy,” and “it’s unlikely that he urged the Bank of Japan to raise rates,” the yen was bought back up to152.35yen. In NY time, as U.S. 10-year Treasury yields rose, the USD/JPY rose to152.37yen, but afterward, U.S. 10-year Treasury yields declined151.86yen was pressed lower to.

【10/29Market View